[Federal Register Volume 81, Number 210 (Monday, October 31, 2016)]
[Rules and Regulations]
[Pages 75315-75316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26234]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 /
Rules and Regulations
[[Page 75315]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 34
[Docket No. OCC-2016-0030]
FEDERAL RESERVE SYSTEM
12 CFR Part 225
[Docket No. R-1551]
RIN 7100 AE-62
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 323
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 722
Temporary Exceptions to FIRREA Appraisal Requirements in Areas
Affected by Severe Storms and Flooding in Louisiana
AGENCY: Office of the Comptroller of the Currency, Treasury (OCC);
Board of Governors of the Federal Reserve System (Board); Federal
Deposit Insurance Corporation (FDIC); and National Credit Union
Administration (NCUA), collectively referred to as the Agencies.
ACTION: Statement and order; temporary exceptions.
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SUMMARY: Section 2 of the Depository Institutions Disaster Relief Act
of 1992 (DIDRA) authorizes the Agencies to make exceptions to statutory
and regulatory appraisal requirements under Title XI of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).
The exceptions are available for transactions involving real property
located within an area declared to be a major disaster area by the
President if the Agencies determine, and describe by publication of a
regulation or order, that the exceptions would facilitate recovery from
the disaster and would be consistent with safety and soundness. In this
statement and order, the Agencies exercise their authority to grant
temporary exceptions to the FIRREA appraisal requirements for real
estate related transactions, provided certain criteria are met, in the
Louisiana parishes declared a major disaster area by President Obama on
August 14, 2016, as a result of the severe storms and flooding in
Louisiana. The expiration date for the exceptions is December 31, 2017.
DATES: This order is effective on October 31, 2016 and expires for
specific areas on December 31, 2017.
FOR FURTHER INFORMATION CONTACT:
OCC: Robert Parson, Senior Appraisal Policy Advisor, Chief National
Bank Examiner's Office, at (202) 649-6423; Kevin Lawton, Appraisal
Specialist, Chief National Bank Examiner's Office, at (202) 649-7152;
Christopher Manthey, Special Counsel, Chief Counsel's Office, at (202)
649-6203; or Mitchell Plave, Special Counsel, Chief Counsel's Office,
at (202) 649-6285 or, for persons who are deaf or hard of hearing, TTY
(202) 649-5597.
Board: Carmen D. Holly, Senior Supervisory Financial Analyst,
Division of Banking Supervision and Regulation at 202-973-6122; Gillian
Burgess, Counsel, Legal Division, at (202) 736-5564.
FDIC: Beverlea S. Gardner, Senior Examination Specialist, Division
of Risk Management and Supervision, at (202) 898-3640; Benjamin K.
Gibbs, Counsel, Legal Division, at (202) 898- 6726; or Kimberly Stock,
Counsel, Legal Division, at (202) 898-3815, Federal Deposit Insurance
Corporation, 550 17th Street NW., Washington, DC 20429.
NCUA: D. Scott Neat, Director of Supervision, Office of Examination
and Insurance, at (703) 518-6363; John Brolin, Staff Attorney, Office
of General Counsel, at (703) 518-6438, National Credit Union
Administration, 1775 Duke Street, Alexandria, VA 22314.
SUPPLEMENTARY INFORMATION:
Statement
Section 2 of DIDRA, which added section 1123 to Title XI of
FIRREA,\1\ authorizes the Agencies to make exceptions to statutory and
regulatory appraisal requirements for certain transactions. These
exceptions are available for transactions involving real property
located in areas in which the President has determined a major disaster
exists, pursuant to 42 U.S.C. 5170, provided that the exception would
facilitate recovery from the major disaster and is consistent with
safety and soundness.
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\1\ 12 U.S.C. 3352.
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On August 14, 2016, the President declared that 22 parishes in
Louisiana were in a major disaster area (Major Disaster Area) due to
extensive damage that occurred as a result of severe storms and
subsequent flooding.\2\ The Agencies believe that granting relief from
the appraisal requirements set forth in Title XI of FIRREA for real
estate transactions in the Major Disaster Area is consistent with the
provisions of DIDRA.
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\2\ Press Release, The White House (Aug. 14, 2016), available at
https://www.whitehouse.gov/the-press-office/2016/08/14/president-obama-signs-louisiana-disaster-declaration.
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Facilitation of Recovery From the Storms and Flooding Declared as Major
Disaster
The Agencies have determined that the disruption of real estate
markets in the Major Disaster Area interferes with the ability of
depository institutions to obtain appraisals that comply with all
statutory and regulatory requirements. Further, the Agencies have
determined that the disruption may impede institutions in making loans
and engaging in other transactions that would aid in the reconstruction
and rehabilitation of the affected area. Accordingly, the Agencies have
determined that recovery from this major disaster would be facilitated
by exempting certain transactions involving real estate located in the
area directly affected by the severe storms and flooding from the real
estate appraisal requirements of Title XI of FIRREA and its
implementing regulations.\3\
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\3\ 12 U.S.C. 3331-3355; 12 CFR 34.41-34.47 (OCC); 12 CFR part
225, subpart G (Board); 12 CFR part 323, subpart A (FDIC); 12 CFR
part 722 (NCUA).
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[[Page 75316]]
Consistency With Safety and Soundness
The Agencies also have determined that the exceptions are
consistent with safety and soundness, provided that the depository
institution determines and maintains appropriate documentation of the
following: (1) The transaction involves real property located in the
Major Disaster Area; (2) there is a binding commitment to fund the
transaction that was entered into on or after August 14, 2016, but no
later than December 31, 2017; and (3) the value of the real property
supports the institution's decision to enter into the transaction. In
addition, the transaction must continue to be subject to review by
management and by the Agencies in the course of examinations of the
institution.
Expiration Date
Exceptions made under section 1123 of FIRREA may be provided for no
more than three years after the President determines that a major
disaster exists in the area.\4\ The Agencies have determined that the
exceptions provided for by this order shall expire on December 31,
2017.
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\4\ 12 U.S.C. 3352(b).
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Order
In accordance with section 2 of DIDRA, relief is hereby granted
from the provisions of Title XI of FIRREA and the Agencies' appraisal
regulations for any real estate-related financial transaction that
requires the services of an appraiser under those provisions, provided
that the institution determines, and maintains documentation made
available to the Agencies upon request, of the following:
(1) The transaction involves real property located in one of the 22
parishes declared a major disaster area as a result of severe storms
and flooding in Louisiana by the President on August 14, 2016
(identified in the Appendix);
(2) There is a binding commitment to fund a transaction that was
entered into on or after August 14, 2016, but no later than December
31, 2017; and
(3) The value of the real property supports the institution's
decision to enter into the transaction.
Appendix (Major Disaster Area)
Designated Parishes: Acadia, Ascension, Avoyelles, East Baton
Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis,
Lafayette, Livingston, Pointe Coupee, St. Helena, St. James, St.
Landry, St. Martin, St. Tammany, Tangipahoa, Vermilion, Washington,
West Baton Rouge and West Feliciana.
Dated: October 19, 2016.
Thomas J. Curry,
Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System, October 21, 2016.
Margaret McCloskey Shanks,
Deputy Secretary of the Board.
Dated at Washington, DC, October 19, 2016.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
Dated at Alexandria, VA, October 27, 2016.
By order of the Board of Directors.
National Credit Union Administration.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2016-26234 Filed 10-28-16; 8:45 am]
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